Wal-Mart reviews Welspun files after Target pulls sheets

Wal-Mart Stores Inc. is reviewing Welspun India Ltd.’ s cotton certification records after Target Corp. raised concerns that the supplier is passing off cheaper bed sheets as premium Egyptian cotton.

Wal-Mart, the world’s largest retailer, plans to hold further discussions with Welspun and “handle it appropriately” if any issues are discovered, according to spokeswoman Marilee McInnis. The chain is also reviewing its other suppliers of Egyptian cotton products out of an abundance of caution, McInnis said. The announcement sent Welspun’s shares down by daily limits for a second straight session.

Wal-Mart is Welspun’s third-largest customer, behind Target, which said late last week it had pulled sheets and pillowcases off its shelves after discovering they were